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MEMORANDUM OF UNDERSTANDING,
ON STANDSTILL AND ROLLBACK ON NON-TARIFF
AMONG ASEAN COUNTRIES

BARRIERS

THE GOVERNMENTS OF BRUNEI DARUSSALAM, THE REPUBLIC
OF INDONESIA, MALAYSIA, THE REPUBLIC OF THE PHILIPPINES, THE

REPUBLIC

OF

(hereinafter

SINGAPORE
referred

Member S t a t e s of the

AND

to'as

THE

KINGDOM

the

OF

"Contracting

THAILAND
Parties"),

A s s o c i a t i o n of Southeast Asian N a t i o n s

(ASEAN):

MINDFUL of the D e c l a r a t i o n of ASEAN Concord
in

B a l i , Indonesia on 24 February

Member

States

shall

take

1976 which p r o v i d e s

cooperative

action

that

in

their

and r e g i o n a l d e v e l o p m e n t p r o g r a m m e s , u t i l i z i n g

national

far as p o s s i b l e the resources available in, the ASEAN
to

signed

broaden

the

complementarity

of

their

as

region

respective

economies;
AWARE
provision
in

of

the

Declaration

of

ASEAN

for a programme of action that seeks

Concord's
cooperation

the f i e l d s of trade in order to promote d e v e l o p m e n t

growth of new p r o d u c t i o n and t r a d e and to improve the
s t r u c t u r e s of individual states and among ASEAN

CONSCIOUS
non-tariff

of the need

ends ;

achieving

and
these

,
NOTING

Trading

trade

countries;

to a d d r e s s both t a r i f f

b a r r i e r s to t r a d e as means for

and

that the Agreement

Arrangements

(PTA)

signed

on

ASEAN

P'referential

in Manila, P h i l i p p i n e s on

24

February

1977

instruments,

p r o v i d e s for

among

the

adoption

them the l i b e r a l i z a t i o n

of

of

various

non-tariff

b a r r i e r s on a p r e f e r e n t i a l b a s i s ;

DESIRING

ASEAN-PTA

in

to effect further the p r o v i s i o n s of

consonance

with

ASEAN's

the

international

commi t m e n t s ;

HAVE agreed to sign a Memorandum

of U n d e r s t a n d i n g

with the following p r o v i s i o n s :

I.

1.

For

DEFINITIONS

the purpose of t h i s Memorandum,

all

parties

agree to the following d e f i n i t i o n s :

a)

"Standstill

Commitment" means the undertaking

by

and among the C o n t r a c t i n g Parties not to introduce

new or a d d i t i o n a l non-tariff measures which

would

impede intra-ASEAN t r a d e ;
b)

"Rollback Commitment" means the undertaking by arid
among

Contracting

eliminate

Parties

to

phase

out

n o n - t a r i f f measures which would

or

impede

intra-ASEAN t r a d e ;

c)

"Non-tariff measures" r e f e r 'to gove rnment measures
or p o l i c i e s other than d u t i e s wh ich affect t r a d e .
II.

2.
standstill

The
and

EXTENT/COVERAGE OF COMMITMENT

commitments

of the

Contracting

rollback shall cover

not

only

Parties

on

non-tariff

measures
on

wh ich are inconsistent with the General

Tariffs

and Trade (GATT) but also

Agreement

non-tariff

measures

which are c o n s i s t e n t with GATT;

3.

The

Contracting

Parties

shall ' implement

their

c ommi tments on s t a n d s t i l l and rollback to c a t e g o r i e s of nontariff

measures,

Annex

I,

a f f e c t i n g ASEAN p r o d u c t s of interest to and being t r a d e d

in

ASEAN;

alia, those

'

4.

listed

,

Without

Contracting
taken

inter

prejudice

Parties

to

in

'
the

under GATT, ASEAN

obligations

of

the

products

shall

be

to mean p r o d u c t s which qualify as such i>n

accordanc e

with the rules of origin in C h a p t e r VIII, A r t i c l e

th e

15 of

PTA.
Ill .

5.

The

standstill

Contracting

MODALITIES

Parties

shall

implement

their

commitments under this Memorandum from its ' d a t e

of entry into force;

6.

The C o n t r a c t i n g P a r t i e s reiterat'e their commitments

made on' s t a n d s t i l l at Punta del Este.

Noh-tar-iff

measures

which are consistent with GATT, if i n t r o d u c e d , shall not

applied,

or may be a'pplied to a lesser d e g r e e ,

on

be

imports

from the C o n t r a c t i n g Parties if th.ey quali'fy under the rules

of orig'in in the PTA;
7.

The

C o n t r a c t i n g Parties shall continue

with

u n i l a t e r a l rollback of all measures inconsistent with

.the
GATT.

Non-tariff measures which are c o n s i s t e n t with GATT shall
negotiated

for

rollback by the C o n t r a c t i n g

Parties

on

be
a

preferential basis;

8.

be

The n e g o t i a t i o n s r e f e r r e d to in p a r a g r a p h 7

undertaken

(TPNG)

by the Trade Preferences

e s t a b l i s h e d by the Committee

(COTT) and

9.

shall

Negotiating

on Trade

and

Group
Tourism

shall commence at the 23rd M e e t i n g of COTT;

Negotiations

shall be undertaken in

any

of

the

following manners: a p r o d u c t - s p e c i f i c approach or a b a r r i e r specific approach or a sector-specific approach;

10.

Each C o n t r a c t i n g Party shall' extend all c o n c e s s i o n s

agreed

upon

Contracting

in

the

negotiations

to

all

the

P a r t i e s on an.ASEAN Most-Favoured N a t i o n

(MFN)

basis.

IV.

11.

SURVEILLANCE

The ASEAN S e c r e t a r i a t shall function and serve

the

surveillance

adherence

to

the

body

responsible

commitments

for

and

monitoring

obligations

as
the

of

the

receiv.e

all

C o n t r a c t i n g Parties under this Memorandum';

12.

The

notifications

and

violation

report

all

consultations

ASEAN

Secretariat

shall

and r e v e r s e n o t i f i c a t i o n s on

of

commitments under

such

notifications

and

negotiations

C o n t r a c t i n g Parties at COTT;

this
to

to

the

Memorandum

COTT
take

suspension

to

place

and

enable
between

13.

The

Contracting

ASEAN
Parties

S e c r e t a r i a t shall report
on

a

semi-annual

to

basis

c o n s o l i d a t e d fashion a-11 d e v e l o p m e n t s on the

all

and

the

in'

a

implementation

of this Memorandum.

V.

14.

The

NOTIFICATION PROCEDURES

Contracting Parties shall

S e c r e t a r i a t of any

notify

the

AS'EAN

i m p o s i t i o n of new non-tariff m e a s u r e s

by

them and shall also submit 'periodically to the said body

an

updated list of n o n - t a r i f f measures m a i n t a i n e d by them;

VI.

CONSULTATIONS

15.

Consultations may be undertaken by the

Parties

in accordance with the p r o v i s i o n s of

Article

Contracting
Chapter

V-II ,

14 of the ASEAN-PTA.

VII.

EMERGENCY/SAFEGUARD MEASURES/
DEVELOPMENTAL ASSISTANCE

16.

C o n t r a c t i n g Parties may

without
or

suspend provisionally

d i s c r i m i n a t i o n the a p p l i c a t i o n of t h e i r

rollback

product(s)

commitments
with

with

concurrent

respect

standstill

to

notification

and

particular

to

the

ASEAN

Secretariat' if i m p o r t s of such product(s) are i n c r e a s i n g
such

a

manner

as to cause or threaten

to

cause

serious'

injury to s e c t o r s p r o d u c i n g like or similar p r o d u c t s in

importing
shall
such

Contracting Parties.

include an evaluation of
as

actual

The examination
the state of

and p o t e n t i a l d e c l i n e

in

of

the
output,

in

the

injury
industry
sales,

share, 1 p r o f i t s , p r o d u c t i v i t y , return on

market

investments

or u t i l i z a t i o n of c a p a c i t y .

17.

Without p r e j u d i c e to its international o b l i g a t i o n s ,

a C o n t r a c t i n g Party may

i n s t i t u t e or intensify

quantitative

r e s t r i c t i o n s to forestall 1 the threat of or to stop a serious
d e c l i n e in monetary r e s e r v e s ;

18.

Where

measures

in

paragraphs

notification

of

Secretariat.
days

any of the'

view

to

16 and

17

emergency/safeguard

are

taken,

such action must be g i v e n

concurrent

to

the

ASEAN

The suspension shall be for a p e r i o d of ninety

during

negotiations

aforecited

which

there

shall

be

consultation

among interested C o n t r a c t i n g Parties with

arriving

at

a

satisfactory

solution

and
the

including

compensatory a d j u s t m e n t s , if n e c e s s a r y ;
Without p r e j u d i c e to the commitment o f 1 Contract i-ng

19.
Parties

will

to GATT, protection of d e s e r v i n g infant

be

served

allowed provided t h a t
to

protection

possible

other
will

Contracting
be

preferential

immed iate
Parties.

for a s p e c i f i c

treatment

notification
The

period

to

be

industries

duration
of

time

negotiated

is
of
with

with

a f f e c t e d C o n t r a c t i n g Parties.
VIII.

20.
the
human

GENERAL EXCEPTIONS

Exceptions to this Memorandum shall be allowed for
protection
and

of national

security,

plant l i f e , h e a l t h , and

public

articles

of

morality,
artistic,

historic

and

archaeological value as

provided

for

under

A r t i c l e XX of the GAIT,

IX.

21.
force

ENTRY INTO FORCE

This Memorandum of U n d e r s t a n d i n g shall enter
from

the d a t e of its signature and

apply for a period of five (5) years.

shall

into

initially

It may be extended by

the consensus of all member states beyond the original five-

year p e r i o d .
X.

22.

FINAL PROVISIONS

This Memorandum of U n d e r s t a n d i n g may be amended

by

consensus of the Contracting Parties;

23.
with

shall

This Memorandum of U n d e r s t a n d i n g shall be d e p o s i t e d
the

S e c r e t a r y - G e n e r a l of the

ASEAN

Secretariat

promptly furnish a c e r t i f i e d copy t h e r e o f to each

who

of

the Contracting Parties.

In

authorized

witness

thereto

wh ereof,

the

by their r e s p e c t i v e

undersigned,

duly

Governments, 'have

signed this A g r e e m e n t .

Done in M a n i l a , P h i l i p p i n e s this F i f t e e n t h day
December N i n e t e e n Hundred E i g h t y Seven in one o r i g i n a l

in the English language.

of
copy

For the Government o f
Brunei Darussalam:

PG. DATO DR. HJ. ISMAIL PG. HJ. DAMIT
Minister of D e:

For the Government of the
R e p u b l i c of Indonesia:

ALI WARDHANA

Minister Coordinator for Economy,
Finance, Industry and Development
Superv i s ion

For the Government of
Malays ia:

DATIN PADUKA RAFIDAH AZIZ
M i n i s t e r of Trade and Industry

For the Government of the
R e p u b l i c of the Philippines.:

S . CONCEPi
of Trade and Industry

For the Government of the
Republic of Singapore:

RICHARD HU TSU TAU
M i n i s t e r for Finance

For the Government of the
Kingdom of Thailand:

DR. ARUN PANUPONG
Minister A t t a c h e d to the
Prime M i n i s t e r ' s O f f i c e

ANNEX I

LIST OF NON-TARIFF MEASURES

I.

GOVERNMENT PARTICIPATION IN TRADE AND RESTRICTIVE
PRACTICES TOLERATED BY'GOVERNMENTS

Government aid
Countervailing duties

Government procurement
Restrictive practices toler,ated by governments
State t r a d i n g , government monopoly p r a c t i c e s , etc.
II.

CUSTOMS AND ADMINISTRATIVE ENTRY PROCEDURES
Ant i-dump ing duties

Valua't ion
Customs c l a s s i f i c a t i o n
Consular f o r m a l i t i e s and d o c u m e n t a t i o n

Samples

;

Rules of origin
Customs formal ities

III.

TECHNICAL BARRIERS TO' TRADE
General
Technical regulations and standards
.Testing and c e r t i f i c a t i o n arrangements

IV.

SPECIFIC LIMITATIONS

Q u a n t i t a t i v e r e s t r i c t i o n s and import licensing
Embargoes and o.ther restrictions of similar effect

Screen-time quotas and other mixing regulations
Exchangecontrol
D i s c r i m i n a t i o n resulting from b i l a t e r a l agreements
D i s c r i m i n a t o r y sourcing
Measures to reg'ulate d o m e s t i c p r i c e
Requirements concerning marking, labelling and
packaging
T a r i f f quotas
V.

CHARGES ON IMPORTS

Prior import d e p o s i t s
Surcharges, port taxes, s t a t i s t i c a l taxes, etc.
Discriminatory film't-axes, use taxes,' e t c .
Discriminatory c r e d i t r e s t r i c t i o n s
Border tax adjustments
Emergency action